Sector: Electric Vehicles (EV)
Founded: 2013
Valuation: $1 billion (2021)

Overview: Ather Energy is a Bengaluru-based electric vehicle manufacturer that builds high-performance electric scooters. It focuses on creating an ecosystem of charging infrastructure along with its vehicles. Ather Energy built its own battery management systems to ensure longer life and better performance of its scooters, reducing dependency on external suppliers.

Challenges encountered:

• Managing battery technology and ensuring a robust charging network.
• Competing against traditional two-wheeler manufacturers in India’s price-sensitive market.
• High R&D and production costs.
• Difficulty in scaling manufacturing operations.
• Regulatory challenges and the need for compliance with evolving EV standards.

Solutions Implemented:

• Cost Management: Introduced cost-effective strategies such as outsourcing certain production components while maintaining in-house control over critical R&D and design elements.
• Manufacturing Scale-Up: Implemented a scalable production model by negotiating long-term contracts with component suppliers and introducing lean manufacturing techniques.
• Tax Incentives and Grants: Advised the company to take advantage of government incentives and subsidies for electric vehicle manufacturers, reducing regulatory compliance costs.
• The company raised over $190 million, with support from Hero MotoCorp and Tiger Global, enabling it to scale its manufacturing and charging infrastructure.

Outcomes Attained:

• Reduced overall production costs by 15% through optimized manufacturing and outsourcing strategies.
• Scaled up production to meet growing demand while maintaining quality.
• Leveraged government incentives to reduce financial pressures, allowing for further investment in R&D and infrastructure.